video like maybe some snowflakes or santa. regina, pick city of the day. picks, picks, picks, and that is it for today. >>neil: have you seen this? call it a town brawl, one month after sandy hit, the victims are having it out. >> homeowners insurance cost -- offered me $150. what can i do with that? what? what? i need your attention. okay. we need to rebuild. i don't want did leave my house. it is not a house, a home. >> i have mold and he is telling me to avoid, where am i supposed

to goes i have gone to fema, to the sba. >> when you go home and get to celebrate if a nice warm house, i have no electric trip, -- electric or sewage but the city comes and the inspector says it is okay to live in. a joke. a joke. you wonder why people are mad? we the middle class and we are getting nothing from fema. they go around in a circle. deny. deny. deny. deny. deny. deny. deny. it is a joke. >> now it is out of control. the fuming still over fema. >> welcome, everyone, i am neil cavuto, done but not out. today, speaking out. victims of super storm sandy still without heat. it will without water. still without homes. now, giving fema officials who planned an otherwise, well,

informational townhall meeting and an earful, fed up with politicians patting themselves on the back, and now, demanding answers. among them, at the meeting last night, heather said politicians have no idea what is going on. on the phone, my guest was at the hearing. we did invite the head of fema to come on and he declined. heather, it sound like it was rowdy and angry. what happened? >>guest: well, in the beginning it started out with a panel of individuals representing the agencies, the department of building, fema, and they discussed what they were doing, what we could do, and they also said that people were there that evening so that if we still had questions we can go there and ask questions. >>neil: how many were there? >>guest: i would say 1,000. i was closed out of the auditorium but i made my way in,

in the spillover area. people were not allowed inside. >>neil: it looks like the folks who wanted to coordinate this got more than they bargained for. what happened? >>guest: we got hurt, sir. we don't know what to do. we lost everything, we are homeless, and there is in hope. we are not getting answers from anyone. last night was horrible and the politicians did not know what to say and they were trying to shut everyone up. we had questions. we had so many questions, and no one has answers. >>neil: a lot of the questions are bake, like, when, for example, will support come in for those who were renting places for extended period of time. the answers that should be readily available at this stage in the game. what else was going on? >>guest: a lot of things. especially now, we open a site

to all the people in the community and trying to shut us down. we are trying to help the people and the city came down and they want to shut us down. why? a lot of homeless people in our neighborhoods and they need help. we don't know what to do. the city is not doing anything about it. we are the people, the community, the yellow team, everyone jump in and we are helping everyone. that is what is going on. very frustrated. we don't know what to do but we are here to help the community. that is it. we are here. >>neil: then they scoffed other problems, right? you did not remove the siding from your home and mold is growing, and there are hairdos conditions there, for help. how vulnerable are you? where do you stand? how is your home? >>guest: i waited 30 days for my adjustor, just yesterday but i was smart enough to say i

can't leave the walls up. i cannot future my house mold that did not exist before. they is sewage --. >>neil: this your house. >>guest: yes. >>neil: you cannot live in hit? >>guest: i am a yellow tag. this is in electricity. or limited electricity. heat, hot water. >>neil: what does yellow tag mean? >>guest: that it restricted use. the electricity, the electrical wiring needs to be redone and the structural damage. >>neil: did you get any answers whether they can do something to address the yellow tag and make it permanently livable? >>guest: that is my responsibility. last night i went to the town meeting knowing i would walk out with the information but i felt i needed to be part of the community which has been supporting me for the last month of the disaster, and i am, i

signed up for rapid repairs which is the program where the city is working with fema to rapidly get back in the houses. however, i was not able to get follow-up to get the repairs. >>neil: are you in the same boat, here? tell us what you are going through. >>guest: we are really hurt. we have red tags on our home. it has to be bulldozed. the other problem is we have air pollution is tremendous. we have been coughing blood and i had to be hospitalized three nights ago and when i was there two people were dead because of asthma. i don't know what we are doing and i told the commissioner of the health and he said no, the air is very clean which it is not. look at my house, i cannot even speak. >>neil: heather i am hearing

you and i have had from others and i heard from aiman who are say the same. last night it all blew up. >>guest: it did. there were no answers. they said they didn't have the answers. >>neil: why hold the meeting? >>guest: good question. it was an environment for people to express their thoughts. it was more of an expression of your thoughts. you could hear the anger, frustration, hurt, a lot of tears. >>neil: i wish you the bet. we will monitor this again. we bring this to your attention not to take it out of context but a month after sandy a lot of people have forgotten sandy. life goes on. they are over it. but we remind you as the officials were patting themselves on the we back, we

know the reality, because we are familiar with this area, friends and family are there. it is not way are being told. but i have to tell you, it isn't what you have been told. if you think the crisis has passed and life is good, these folks, many of them have faced thanksgiving from hell, are now looking at the same thing for christmas. i think they deserve better. and i think our government if it is going to step up to the role of doing more should try. in the meantime, before the townhall, we had this. >>guest: you think this is a joke? a joke? you are a joke. you it is there with a smile and i thought you would do better and that is why we voted. we thought you would help the people. >>neil: i am telling you, folks, this erupted and staten island residents were not only

yelling at officials but taking on president obama. >> i told president obama he lied, fema lied, they are all here for political stunts. >>neil: you said that to the president's face, he was slapping you on the shoulder. >>guest: he said "relax." he said he is here to help, relax and let me tell him my concerns and i told him. president obama, you are giving the middle class the raw finger. >>neil: wait until you hear what happens next. and you wills an extraordinary interview with an extraordinarily angry guy tonight at 8:00 p.m., on fox business network as scott tells us the whole story, a story you do fought want to miss. >> nearly 30 days away are house republicans getting ready to walk away from a budget battle

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>>neil: did republicans get:. scrooged. >> every family will see their taxes go up january 1. i assume that does not sound too good like the lump of coal you get for christmas. that is a scrooge christmas. >>neil: the president taking republicans out for being the scrooge this christmas, but the villains, taxes will go up on everyone if they do not give in and hike them on the rip. the white house calling for $1.6 trillion in tax hikes upfront and $50 billion in new stimulus spending and speaker boehner is not impressed. >> they want to have this extra spending that is actually

greater than the amount they are willing to cut. it was not a serious proposal. >>neil: consider that republicans should simply walk away from the talks. risks be damned and byron york on how that would play out. >>reporter: i don't think it would look good for conservatives, the accusation would be they dumped out after the president's very first offer. so it seems to me to make more sense for the republicans to make a counteroffer of their own making just as serious an offer as the president made, maybe they could offer up the ryan budget, or more extensive entitlement reforms or something like that but it seems to me that just running away would be a bad idea especially when talks have not gotten serious yet. >>neil: is it your sense if they do not get a deal and the

sequestration kicks in it will be blamed as the mainstream media says on republicans and republicans take the heat and the hit? >>guest: republicans certainly believe that. >>neil: do you believe that? >>guest: the fear factor, i think so, unless they do something before christmas. now, the craziness of the situation is president obama campaigned on raising taxes, a tax rate for the highest earners, and he could win on that right now. it is clear the republicans will cave. the republican nightmare is there is a stand off they go over the fiscal cliff, after all the tax rates go up and the president, of course, proposals to lowerren's -- lower everyone's taxes but the highest and if the republicans resist he will say the republicans are talking you from getting a middle-class tax cuts because they want to recollect their millionaire friends. if republicans are going to agree to higher tax rates for the highest bracket, do it quickly, and, then, president

obama would be the one who is refusing it because he is throwing in all sorts of extra things like total executive branch control of the debt limit. >>neil: who came up with the $50 billion in new surplus spending in the middle of this? come on! >>guest: the question, it is an interesting offer, kind of an office that the president gave yesterday which was call it disrespectful, a disrespectful offer and the question is, are republicans going to take it personally and get mad about it? or will they say, well, this is the early stage. we are standing around and snorting and we will get down to serious stuff. but a lot of republicans were actually insulted by what the president did yesterday. >>neil: byron, good talking to you in washington, dc. not too far from where byron is sitting speaker boehner declaring a stalemate in the talks. can it be broken? and now to a washington

congresswoman in her first interview since being elected. contrary to what you have been told there are women in powerful positions in congress. we reached out to her counterpart on the democratic side but we have yet to hear back. congresswoman, what now? what do you think is the status of this deal right now? >>guest: well, the president's proposal yesterday was quite disappointing. the republicans are committed to a solution. we committed to avoiding the fiscal cliff. itould be economically devastated on america. we have heard the numbers, 700,000 jobs lost estimated and a double dip recession. we don't want that for america. anyone wants that for america. it started by us putting people ahead of politics. i believe that republicans and democrats, we can work this out, we need to come to the table, start the "new york times"es, -- start the negotiations, we put tax revenue on the table as well

as the speeding cuts, and it needs to be, it needs to include both. >>neil: so if you don't hear and it has to be specific, spending cuts, not promised cuts, if you don't hear that, no deal? >>guest: that is connect. we believe, we are in the midst of a debt crisis. it needs to be, we need to be honest about the fact we cannot raise taxes, it needs to include the spending cuts. the president, even just recently, last week, was talking about a 3-1 type ratio where there would be $3 of spending cuts for every dollar in tax increases. or tax revenue increases. we were willing to come to the table and try to work out that kind of an approach or solution. i would say that republicans and democrats are either going to succeed together or we are going to fail together but i am confident we can work it out on behalf of the american people.

>>neil: well, you may have her nancy pelosi in the house threatening a floor vote on extending the middle-class tax cuts. unless you guys don't get out and do something. >>guest: we are here. we are ready. we are being reasonable. responsible. we have been putting forward our solutions. >>neil: what do you think her offer? >>guest: we are going to, the time may come where we will actually bring different proposals to the floor for a vote. >>neil: that would not come? >>guest: no, i don't think it will come next week. we still have more time. >>neil: and this talk, it is just talk, congresswoman, so dismiss it as such, the president could be open on revenues to maybe not return to the clinton era tack -- tax rate and maybe split the

difference, have that workable? >>guest: the republicans have certainly said we are putting revenue on the table, we believe this is the time for tax reterm. we need to close loopholes. >>neil: taxes will go up but they need not go up to 39.6 percents but split the different presence and make it 37 percent or 38 percent and it could be the beginning or a branch from the white house. do you buy that? >>guest: let's put everything on table. >>neil: you are not saying "no" upfront? >>guest: republicans do not want to see tax rates increase. we don't think -- we think we can find the revenue and spur the economy without raising the tax rates. >>neil: thank you and congratulations on your new prominent role in the house of representatives. good to have you. coming up on fox news sunday, chris wallace chats with house of representatives speaker

boehner and talks with treasury secretary geithner. will the deal happen before the chock runs out on the 31st? chris will get to the bottom of it. the u.n. votes and the palestinians could not be happier. more ahead. hi. i'm henry winkler.

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>>neil: party time not members after the united nations voted for palestinian statehood despite america's vocal disapproval of threat to defund the u.n. and john bolton, our former ambassador, joins us now. what do you think of all of this? >>guest: the u.n. pass as lot of resolutions that are meaningless and it pass as lot of resolutions that are divorced from reality. unfortunately, this one, although divorced from reality,

is going to have potentially serious consequences for israel. obviously, palestine is not a state in the customary international law. this is purely political decision. it caps 20 years of efforts by the palestinians to reach this point because it will give them an advantage in their negotiations with israel. they will use it to try and achieve that advantage and exceeding the treaties they will then use against israel and try to coax more money out of the u.n. system and the donor community and a variety of other ways. >>neil: you don't buy the argument pushing for statehood that when they have their own country the violence stops? >>guest: i remember 30 years ago in the reagan administration i heard a retired foreign service officer say just give them a piece of ground they can put a flag in and everything will be fine. well, they have ground with flags this them and it is still

not resolved. the point is not the boundaries of a palestinian state and where they might be drawn in gaza or the west bank but the issue is what kind of state is going to be on the other side of the boundaries and we know in part in gaza it is a terrorist group named hamas. >>neil: so, we have to deal with the u.n. and we pay the lions share, what do we do? >>guest: we should cut off funding for the u.n. itself or at least a substantial part of it. senator hatch has introduced an amendment that would have that effect. the way we stopped all of this nonsense back in the george h.w. bush administration was by threatening to do just that. congress wrote part of what we have threatened into law. they did not cover this particular circumstance. it was the weakness of the obama administration going back to last year when the palestinians

joined unesco vote. if they used the diplomatic tools this vote would not have taken place. >>neil: do you get the feeling as a naive observer, it is us and israel looking more like custer, the whole world is going one way? and we are watching. >>guest: only if you think the u.n. compound in are you it people bay in manhattan is not the twilight zone. the whole argument about in vote yesterday was abbas is down because hamas has been firing rockets and we have to lit -- lift him up and many of our european friends vote if favor of this and that is the kind of thing that discredits the u.n. i don't think we should worry about it in the macro sense but i do think this is going to be used very much against israel. and they are making a mistake in

minimizing the consequences. i know the pain hurts but this is a very important political victory for the palestinian authority. >>neil: do you think we will see a palestinian state? >>guest: well, not any time soon at the rate they are going. that is why the vote is contrary to reality but that makes it par for the course at the n. >>neil: thank you, ambassador. if the president's pitch does not give him the extra $50 billion in instruction he -- in stimulus he is seeking, groups are gearing up. a republican lawmaker is saying they are hoping it doesn't take him down and he is challenging him. to investing with knowledge. the potential of td ameritrade unlocked. nyse euronext. unlocking the world's potential.

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>>neil: fired up protesters planning to upset republican lawmakers to get them to side with the president on a deal that does not involve spending cuts. will it work? >>guest: i am never sure if the president is coming from the north pole or on the polar express. what we hate is someone would re-gifts, but it has $1.6 trillion price tag and is the same thing. the president is asking us to give him a credit card and he will set the limit on, not us, not congress, not those would will pick up the tab, the american taxpayers, he is very god at doing things and he goes to pennsylvania to a toy

factory, to a company that makes something called angry birds. mr. president, if you want to see angry birds come to western pennsylvania, where the median average income for families since you came to office nationally has gone from $55,000 a year down to $51,000 a year. >>neil: maybe he is rolling the angry bird dice and thinking you will have more angry birds and voters in your district if everything falls apart and there is no dole and all the taxes go. >>guest: no one wants taxes on go up and the president believes that. i am disappointed after the election he goes right back to divisiveness. why is a man who is supposed to bring us together continue to divide us in if he is dress about fixing the problem, why not it is at the table with an adult conversation and get things fixed rather than going to a toy factory in pennsylvania and telling people we need to divide the country more? we need to split you up more.

i don't have what i want. very spoiled activity. >>neil: well, his supporters are saying look, you agree on almost everything, in fact, the renewing of the rates for everyone but the rich, and if you can give up the argument for the rich, you are allen at same page and why not just cool it. >>guest: well, no, no, no, listen, speaker boehner after the election said, we are willing to put revenue on the table, and we will have a --. >>neil: he has not done that to your liking so no deal yet. >>guest: there is nothing of substance there, it is all lights of fantasy. >>neil: i like the angry birds reference. very clever. good to see you. the president in the congress man's home state of philadelphia, and now ed henry the most incredible white house corporate on the planet. anyone buying had?

>>guest: not john boehner, and mcconnell is not either. you heard yesterday when treasury secretary geithner put the plan on the table, mcconnell literally laughed out loud because they saw sticker shot on republican side. they believe the president campaigned on $800 billion tax increases back over the last few months and now suddenly it is doubled to $1.6 trillion because it is not just about going back to the old clinton tax rates and letting the bush rates expire it is also about adding new taxes on capital gains, dividends, et cetera. the push back is the president campaigned on this and he believes he won that argument, and he believes that once republicans give in on the tax argument, at least extend the bush rates for the middle class, as the president says, 98 percent, basically, he will talk about spending cuts and i think

that is the other frustration republicans have, they think if they give in on taxes, now, with a promise of spending cuts later, those cuts will never materialize. >>neil: do folks at white house think there will be a deal by the end of the year? >>reporter: they honestly don't know but i think when you talk to them at the highest levels, they thing it is more likely than not because they think that the republicans will not risk this in continues of going off the cliff and making the economy worse, all of that and as you her nancy pelosi say today in her words, elections have consequences. they thing the republicans are going to realize it would be a mistake that not have some sort of a compromise here. >>neil: thank you, ed henry. tens are still high, a month after sandy. >> you it is there. you think it is a joke? you think it is a joke? you laugh. >>neil: not a joke to that guy. we will hear a lot more from him

tonight. up next, do these victims a legal case against fema?

.

>> the middle class is getting the middle finger and he said fema works for me but fema ain't doing nothing, they go around in a sin kill, denied, denied, denied, denied. you need to take action. >>neil: you can be steamed but can you sue? can you actually go after fema legally? our legal analyst, lis wiehl and mercedes, really to try this. lis? >>lis: i think so. it happened with katrina in 2005. victims sued fema and actually won. you can sue for gross negligence. it is a contract. here is what i argue to this gentleman on the screen and

other people there. as a woman who had literary her roof blown off i am not unbiased on this. you have a contract with fema. we all do, to take kay of discuss protect us if a hall disaster like this. if they do not come through, which they have not in a month for many people as we have seen you can sue for breach of contract, gross negligence. >> two words: sovereign immunity you cannot sue a federal government or the agencies unless they give up a waiver. there is an exception of the gross negligence and willful conduct but that is not what he was saying, they have 475,000 people to need. for us be able to manage the catastrophe, the storm of a century, it is impossible for us to get there and give them the help they need under the immediate circumstances. >>lis: we are talking a month. >>guest: right now we have to do a look and see.

>>lis: look and see? look and see? >>guest: it is 30 days. i was personally affected, too, so i feel for those individuals. my babysitter is in that circumstance but frankly it is a problematic. many of the katrina cases and you studied those that were successful but many were not successful because of sovereign imcommunity. >>neil: you don't like the sovereign immunity thing? >>lis: when it is past 30 days and these people angry as they, rightfully so, fema is not doing it, why care how many people veto could come after, they are the federal government, what are we paying them for? they are not doing their job. >>guest: this is -- this goes back to gross negligence. 30 days out that is what they dealing with. 30 days out...

>>neil: what if it is a pattern of behavior that is crazy, not having phones set ups the basic things family is supposed to do that is automatic at a disaster site they did not do at all. >> gross negligence, willful misconduct. >>neil: does it matter? >>guest: for 475,000 people if need versus what they can do. >>lis: the other case brought against katrina was when they finally got there to help people, they put them in trailers and what happened? they were toxic fumes in the trailers so they were late in get there and they finally provide trailers they were toxic >>neil: but we are hearing, let me ask you this, we are hearing, now, they are telling a lot of folks whose homes are destroyed you is to rip-off your

siding because of mold and that is toxic threat. so, we could have a lot of serious cases down the road. >>guest: exactly. you mean the toxicity? you could see a lot these claims and who is at fault? the homeowners if they are instructed, there are several levels, the yellow tape means they can enter their home. >>guest: you are dealing with people who lost all their contents, perhaps their entire home and you are going to put the blame on them. >>guest: not me personally that is how the law is interpreted. >>lis: well, then, it is wrong. >>neil: on the water and now underwater, should the sandy victims be able to rebuild in the same spot this when it happens to john stossel, he did. why is he saying "no" now?

>>neil: the estimated combine price tag of damage left behind by hurricane sandy in new york, new jersey, and connecticut mostly from coastal blooding and some are worried that fema's national flood insurance program could be depleted over $80 billion. john stossel says it should be shut down. >>guest: that is one reason. the government is not competent to be in the insurance business. when it goes in there, saying, well, the private market isn't there? well, we will ensure you. that unusuals people to build in dangerous places and when some of the homes on the coast go, it

is the poor subsidiesing the rich. >>neil: but you had a situation like this? the government offered you money to rebuild your home. >>guest: i did the evil thing, a younger me up there on the deck, and i would never have built this house -- that was me many years ago and my father --. >>neil: what are you wearing? >>guest: a bathing suit for heavens sake. >>neil: sorry. sorry. >>guest: i would never have built on the edge of an ocean but the architect said, well, there is a federal program you can't lose. >>neil: were you a libertarian? >>guest: no, i was a dope. a dope. and sure enough, the first floor went as you see in the picture. the whole house went, i will not rim you off again, thank you, you paid, knocked down the first pay, it happened again you paid, this program is a subsidy that should not exist. >>neil: do you of make a case,

though, storms like this are rare, certainly in the northeast, and i can understand people who are on the water's edge and people further in, now, private insurers will avoid this area like the plague, but you cannot chase people away from the entire area, point pleasant area, a lot of people live there, and even those right up there on the coast, are you saying just get out and we should not subsidize or play any role whatever? >>guest: yes. and private insurance will not walk away. they are not stupid. >>neil: they will charge you through the nose. >>guest: if they are charging through the nose that is plus you live in a place where you ought to be charged through the nose. if they charge you too much, some other agreedy insurance company will say i will charge you less if they can make a profit doing it. >>neil: but here in the high premium areas where if you are a risk and everything goes up you all pay the price. >>guest: but no one has to live in the dangerous places. we are encouraging them with

government insurance. >>neil: you may is watched that segment and said, jill, you interrupted john stossel too much, again and again the last couple of weeks you say i should just shut up, i will take this on and you going to give me what many you say i have long deserve the. after this. >>guest: that is that? (announcer) when subaru owners look in the mirror, they see more than themselves. so we celebrate our year-end with the "share the love" event. get a great deal on a new subaru and 250 dollars goes to your choice of five charities. by the end of th, our fifth year, our total can reach almost 25 million dollars. it's a nice reflection on us all. now through january 2nd.

. >> neil: finally, we interrupt this program to talk about, well, my interrupting on this program. some of you had enough, say i go way too far. our e-mail, your voice is very grating and you continue to interrupt your guests when they answer your questions. wife don't you retire? donald, in grove city, ohio. will you please shut up and let the guests talk? jim in florida, when you ask a question, shut up and listen to the answer.

your guests are trying to explain something and you keep interrupting. rude as hell. jim, it's rude if they are explaining. not so if they are just avoiding. the fiscal cliff yapping politicians who'd rather spout speeches than offer solutions. a lot of avoiding going on here. very few specifics. you might it rude to interrupt the speech, i find it rude to allow one. bretty in new mexico writes -- i understand the need to prevent them rambling on, but if that is what they are going to do, why bother booking them? to get answers, betty. if they're not answering or are stonewalling i have to step in. some argue i don't step in enough. from carl in new york -- you let democrats spin and spin. elen nash detroit -- curious after you never go after a republican, don't you think? are they watching the same show? sal in new jersey -- you are a gutless, spine lest laptop to whatever guest you are suck up to.

if you don't have it in you to challenge how do i get it to your boss? i could have him fire you. ann -- you are an ignoramus. i'm not. kelly in oregon -- why don't you gauge the guests more? consider the classy suggestion. this from david via aol. if you're so smart why do you look and sound so dumb? you got me. must be good genes. someone told me your voice sounds the way it does but yore sick or something. then i neem a doctor's office and caught an article on you and i felt really bad. nod bad enough to like you bad that fox couldn't so through the -- see through the pity. alonzo in puerto rico

writes -- where i come from we beat crap out of arrogant jerks like you. where i come from, we don't e-mail stuff like that. we do it. unless you cop here and do it. anyway, kyle in washington, d.c., i read somewhere you're trusted by whom? aliens from outer space? yes, kyle. exactly. l.aaleshxi -- you're not alone. you are scaring me -- so i looked you up on the internet and discuss what you show on the air, smart, educated, well regarded! 30 years and you've never been fired. there is a first time and it's coming soon.

you are not good looking, sounding like a sick parrot yammering and yammers and dress like something between gomez from the adam's family and nathan lane. this is funny. from "bird cage." but you're on national tv and i'm watching you. is this a great country or what? it is indeed. if it weren't for the constant interruptions you'd be perfect. but you're an ass. you love the sound of your own voice more than peace for the viewers' ears. carol, i'm only seeking out the truth for my viewers. not speeches. answers. they don't stop answering, i don't stop interrupting. chip soothe bend says i shouldn't and his is the e-mail i am now officially cold. ♪ my e-mail of the week! i don't know if you remember meeting me at the democratic convention this past summer. you took a picture, you were

very kind. i told you i thought you were very fair. if you were interrupting only democrats or only republicans i'd worry. but you seem like a pretty fair and aggressive questioner to me. both sides respect you for it. nowhere on tv this election year did i see an anchor who managed to get so many big guests of both parties come on and have at it with him. they clearly liked you, admired you and enjoyed the tousessal with you. when -- tussle with you. when john mccain tells you, that you can stop sending him personal thank you notes or that you are robbed for not being voted sexiest person on earth that proves to me and my wife you are out of this world. way to go. you give us dorky losers who never got a date in high school hope. isn't that said that that was the nicest e-mail i received? i'm not vulnerable. i know interrupting bothers you, but time is tight and we have to get to the point.